Euro zone inflation cools to 1.7% in January, flash data shows

Group 1 - Euro zone inflation cooled to 1.7% in January, down from 2% in December, aligning with economists' expectations [1][2] - Core inflation, excluding volatile items, decreased slightly to 2.2% from 2.3% in December [1] - The key inflation rate is now below the European Central Bank's (ECB) 2% target, indicating a likely pause in rate cuts [2] Group 2 - The ECB is expected to maintain its benchmark interest rate at 2% during its upcoming meeting, with no changes anticipated in the near future [2] - Factors that could influence the ECB's stance include geopolitical tensions, euro appreciation, or higher-than-expected inflation [3] - The baseline scenario suggests no changes in policy rates for 2026 and 2027, with a high threshold for any action [4]